Category: Newsflash

On February 15, 2016, the Coordinating Ministry for Economic Minister (the “Ministry”) issued an official press release regarding the upcoming presidential regulation that will supersede the Presidential Regulation No. 39 of 2014 on the negative list of investment (Daftar Negatif Investasi – “DNI”). Along with the press release, the Ministry also issued a list of Read more…

In today’s era of seemingly borderless trade, it is important for a country to support the infrastructure sector, so that domestically produced goods can compete with products from other countries. Indonesia is not an exception. The government established the legal framework for Bonded Storage Areas in order to incentivize industrial production and trade across the Read more…

On August 19, 2015, the President enacted Government Regulation No. 64 of 2015 amending Government Regulation No. 61 of 2009 on Ports (the “New Port Regulation”) in order to stimulate investment in port infrastructure by allowing Port Administrators to use direct assignment and appointment to grant port concessions. To implement the New Port Regulation, the Read more…

To accelerate economic development and job growth, the government enacted Law No. 39 of 2009 on Special Economic Zones (“SEZs”). ♦ INCENTIVES AND FACILITIES SEZs attract investors by offering a number of facilities and incentives, including: Exclusion from restrictions under the Negative Investment List (except for reservations for SMEs and cooperatives) Income tax facilities Land Read more…

As a part of the Economic Policy Packages launched by President Joko Widodo, the Minister of Trade issued the Minister of Trade Regulation No. 70/M-DAG/PER/9/2015 on Importer Identification Numbers (the “New Regulation”) on September 28, 2015. This regulation replaces the previous Minister of Trade Regulation No. 27/M-DAG/PER/5/2012 on Provisions on Importer Identification Numbers as lastly Read more…

On October 23, 2015, the Minister of Manpower issued Regulation No. 35 of 2015 (“Regulation 35”) to amend certain provisions of the Minister of Manpower Regulation No. 16 of 2015 (“Regulation 16”). The amendment is made due to certain concerns raised by stakeholders. The key amendments are as follows. ♦ The 1:10 Ratio The ratio Read more…

Debt-to-Equity Ratio Determined by Government After more than 30 years, the Minister of Finance finally issued a regulation to determine the debt-to-equity ratio (the “DER”) for certain corporate taxpayers for the purpose of calculating the payable income tax of the corporate taxpayers. Article 18(1) of Law No. 7 of 1983 regarding Income Tax, dated December Read more…